panel 2. ccs in the asian century - ashok bhargava, adb
DESCRIPTION
Delivered at the Global CCS Institute's Global Status of CCS: 2013 event in Seoul, 10 October 2013.TRANSCRIPT
CCS Activities in Developing Asia– Insights and Next Steps
Ashok Bhargava Director, Energy Division East Asia Department
Seoul, 10 October 2013
ADB CCS Fund
In June 2009, ADB established a CCS Fund with an initial contribution of AUD 21.5 million from the Global CCS Institute, Australia. In 2012, Government of the United Kingdom also pledged £35 million in the fund.
Specific Eligibility Criteria
Accelerate demonstration of CCS technologies
Identify, lower and / or eliminate general or country specific barriers for CCS demonstration
Identify, eliminate or mitigate risks in capture, transport and storage technology demonstration
… in the People’s Republic of China
Key Partner
Target three major capture technologies
PRC – Overview of ADB Activities Capacity Development and Policy Advisory Assistance
Support upstream analytical work, analyze issues, identify costs and risks on real projects
Department of Climate Change, NDRC
China Huaneng : pre-combustion capture – IGCC
China Datang : post-combustion capture - natural gas plant
Dongfang Boiler – Oxy-fuel combustion capture - coal-based power plant
Aims to develop a key planning tool for the Government to demonstrate and deploy CCS
PRC – Overview of ADB Activities Develop CCS Roadmap
Establish enabling environment for CCS demonstration and possible deployment.
Includes following major outputs
1. Time bound action plan for demonstration (up to 2020) and deployment (up to 2025)
2. A policy and regulatory framework with an accompanying set of incentives
3. Shortlist and ranking of early-stage CCS demonstration projects
4. Suitable business models for implementing early-stage projects
Next Steps in the PRC ………..Pilot Project
Next Steps ……….Pilot CCS Project at Tianjin IGCC Power Plant
Capture up to 100,000 tons CO2 / year to partially used for EOR and partially for storage
Due diligence is underway; power and oil company collaboration proving difficult
ADB may provide up to $10 million grant for CapEx and a compensatory mechanism to offset energy penalty
Pilot project likely to be in operation by 2015
Next Steps ……….FEED Studies for a large-scale CCS project
Discussions underway to select one of the early-stage projects identified through the ongoing CCS road map work
Need to scale-up CCS efforts urgently
What have we learned so far in the PRC
In-country technical capacity exists; large number of point sources in close proximity to potential storage sites
CCS is not a strategic choice; no national target, incentives or support mechanism in place.
Negligible cooperation between power and oil companies not conducive for CCS
Early projects will need risk sharing or preferably risk bearing by the Government
Technical readiness
Weak policy support
Fragmented institutional setup across CCS chain
Need for public financing
Moving on to Southeast Asia ………..
Potential for CCS in Southeast Asia
• A regional study with focus on Thailand, Vietnam, Indonesia, Philippines completed recently
Study aimed to:
i. Establish inventory of CO2 emission
sources
ii. Estimate storage potential
iii. Determine source-sink matches for CCS
iv. Identify potential pilot projects
v. Propose Road Map for CCS development
vi. Develop “CCS Working Groups” which could provide leadership on CCS
Potential for CCS in Southeast Asia - Main Results
Annual inventory of 200 million tons of CO2 emissions from sources (coal and gas
power plants, natural gas processing facilities, future power plants, and smaller sources such as fertilizer plants)
Natural gas processing facilities are preferred because of lower incremental cost of capture, storage site proximity, and existing transport infrastructure
Sufficient capture streams are available
Natural gas processing and new power plants are best sources for capture
Potential for CCS in Southeast Asia - Main Results….contd
Estimated storage capacity of 56 giga tons of which about 90% is in saline aquifiers. But due to uncertainties of aquifiers, study concentrated on oil and gas fields
143 oil and gas fields offer more than 3 giga tons of capacity. Since the geology is well understood of these fields, they were ranked for early stage projects.
Large storage capacity
Large number of oil and gas fields provide adequate storage for early stage projects
Potential for CCS in Southeast Asia - Main Results….contd
Next step in Southeast Asia Region – Pilot Project in Indonesia
Collaborative approach
Due diligence support
• Pilot project financing support
Collaboration with JICA, Pertamina, and Institut Teknologi di Bandung
Follows on a JICA scoping study ($5 million, 5-year) at Gundih gas field in Central Java
ADB to provide due diligence support to PERTAMINA to review preliminary design of surface facilities for test injection, identify legal and regulatory issues and develop regulations and apply for permits as appropriate.
ADB may follow with a $10 million grant for capture and test injection from its CCS Fund
What did we learn so far in developing Asia for CCS ………..
Key Issues and Barriers
CCS is a last resort policy approach
Energy intensive mitigation approach
Lack of in-country experience in planning, construction and operationLack of delivery
mechanism / business model
Absence of targeted incentives / concessional financing mechanism
Limited public awareness
ADB (2011): “… key barriers to CCS are amplified in developing countries ….”
Way Forward
CCS is a last resort policy approach
Energy intensive mitigation approach
Lack of in-country experience in planning, construction and operationLack of delivery
mechanism / business model
Absence of targeted incentives / concessional financing mechanism
Limited public awareness
ADB (2011): “… key barriers to CCS are amplified in developing countries ….”
Demonstration projects in identification stage
Government Commitment, incl. policy targets, regulatory, fiscal, and financial support measures
Right business models for early stage demonstration projects
Mechanisms to offset higher costs, and energy penalty
Awareness and support from civil society
Realized demonstration projects
